I manage a property with 3 greenhouses in Northern California (by Sacramento)...boss wants to rent them and I am finding it difficult to come up with a fair market value for the area.

We are talking evaporative cooling with pads, thermostats and fans. Heat is with natural gas heaters and jet fans. 600 watt lights throughout.

If anyone can provide me with what they feel a good per sq foot monthly lease cost might be that would be awesome. Also, if there are any good places to advertise for greenhouse rental I would love to know.

Thanks!

I've been to Northern California.... Oh wait, I'm FROM Northern California. Its a really big place. I imagine you could rent out space if you are closer to a population center and were set up to lease space for specific plants, ie cactus or orchids. But it would be what the market would bear. You might have more takers if you rented out square feet instead of greenhouses.

im arriving you looked for and couldn't find comps?

Do they have separate utility meters?
what is the property zoned for? In other words could a grower retail from that property or would they have to wholesale?

I think the first thing I would do is figure out how much other spaces in that area are going for.
what does other warehouse industrial property rent for?
then you consider overhead
and the type of lease, ie tripple net, build to suit, who takes responsibility for what..

I'm in the Sacramento area, but I have no experience with renting greenhouses. Being close to Sacramento can mean you are in one of a half dozen counties. That matters because (sadly or not depending on your viewpoint) the highest rent you will get for the greenhouses will probably be for cannabis cultivation. Permanent indoor structures (especially where the facility is connected to a community sewer system) have great advantages for permitting cultivation activities. However, Proposition 64, which legalized many cultivation activities allows local agencies to impose additional requirements or outright bans. Some counties or cities have banned any commercial cultivation activities. There are numerous other rules regarding proximity to schools, etc. that may also be relevant, and the state has established a draconian permitting process that reportedly extracts such high fees that many growers have abandoned the legal process and returned to illegal cultivation.

I would imagine that if you were to obtain the cultivation permits and lease the facility as a turn-key grow facility, the rent would be much higher. There are a lot of listings online. Try Googling "cannabis greenhouse for rent" or "420 property," that sort of thing. You'll find a lot of offers. The State offers permitting assistance at: https://cannabis.ca.gov/

I am not in the cannabis business, nor am I a promoter, but I am familiar with permitting rules in California. I hope this post isn't against any forum rules. I'm still a rookie around here.

I don't think this conversation was about how to rent to cannabis growers but I could be wrong...

BTW, the thread is a year old.